Cutter Enterprises purchased equipment for $99,000 on January 1, 2024. The equipment is expected to have a five-year life and a residual value of $7,200.

Using the sum-of-the-years'-digits method, depreciation for 2024 and book value on December 31, 2024, would be:

Note: Do not round the depreciation rate per year.

Multiple Choice

$33,000 and $66,000, respectively.

$33,000 and $58,800, respectively.

$30,600 and $68,400, respectively.

$30,600 and $61,200, respectively.